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Weekly Roundups

The Third Infrastructure Package Has Arrived

By Lorenzo Núñez | Thu, 07/29/2021 - 16:35

The Third Infrastructure Package is here, with the promise of improving mobility projects with an additional 10 to 15 projects. In addition, the Railway Industry has seen an increase in transportation volumes compared to the same period in 2020 indicating a steady recovery after the pandemic.

This and much more, in your Weekly Round Up!

 

Third Infrastructure Package Has Just Arrived

In a conference hosted by the College of Civil Engineers of Mexico, Márquez detailed that these projects will be added to the other 30 projects where the SCT is currently participating in. As previously reported by MBN, the first package was released back in November 2019, made up of 147 projects with an investment totaling US$43 billion (MX$859 billion pesos). While the second package was released in November of last year, which brought together 29 projects with a combined investment of US$11.4 billion (MX$228 billion pesos), according to the president’s website.

The Ministry of Communications and Transportation (SCT) is developing between 10 and 15 projects totaling US$3.4 billion (MX$70 billion), which are considered as part of the third infrastructure package to be presented and promoted by the federal government and the private sector, reported Rogelio Rivero Márquez, general director of Highway Development for SCT.

 

US has changed the liability structure of cleanup operations for oil and gas operators

A US federal judge issued a ruling on Fieldwood Energy’s bankruptcy protections. According to a Wall Street Journal analysis of the ruling, the ruling declared that the company “could pass on hundreds of millions of dollars in environmental liabilities to prior owners and insurers of the wells as part of its reorganization plan.” This means that any well in which Fieldwood operated and produced oil and gas does not necessarily have to be cleaned up and decommissioned (a process sometimes referred to as “abandonment”) by Fieldwood. Instead, those costs and responsibilities could be offloaded to other operators who either originally drilled those wells or owned them in some other capacity.

This ruling caused an uproar among major industry operators, all of whom have done significant work on both sides of the Gulf of Mexico (GOM) and could be liable to pay for this cleanup work as a result. These operators include BP, Shell and Exxon Mobil, along with all insurers that work with them, who are all nervous about this ruling which has created a situation where they cannot keep their promises to their clients to keep them away from liability.

 

Xochimilco Rehabilitation Boosts Residential Real Estate

The recent rehabilitation of the ecological Xomichilco park is projected to increase the real estate value of the neighboring communities. There will also be an added value for the housing park in the medium term, as the rehabilitation of this space will have multiple benefits for the area and its residents.

For Leonardo Gonzalez, an analyst for the real estate website Propiedades.com, the improvements to the environment will give the surrounding areas a better perspective for development and habitability. He also mentioned that this is an excellent time to buy a home in the surrounding areas.

 

SCT Launches First Bidding for Mexibús-AIFA Extension

The Ministry of Communications and Transportation (SCT) launched the first bidding process for the executive projects for the Mexibús systems that will connect the Felipe Ángeles International Airport (AIFA), which will be financed with US$4.4 million (MX$90 million) allocated for the Highway Studies and Projects Program.

The first bidding process of the Mexibus involves the project for a 1.8 km extension and a vehicular overpass located in the municipality of Zumpango, where the loading facilities will be located. Based on information from the AIFA, in order to guarantee the flow of passengers, cargo, as well as military functions, there will be four accesses. The first and main one will be a junction with the Circuito Exterior Mexiquense (on the west side). At this end, there will be a road that will connect directly to the passenger terminal using an elevated highway, as reported by El Economista.

 

Reactivating the Tourism Industry through "Adaptur"

Mexico's Ministry of Tourism (SECTUR) and several government institutions have implemented a national program to achieve sustainable tourism through "Adaptur," aiming to address climate change. Miguel Torruco Marqués, Minister of Tourism, indicated that climate change and sustainability have been priority issues for the current administration.

SECTUR, in coordination with the German Cooperation Agency (GIZ), the Ministry of the Environment and Natural Resources (SERMANAT), the National Institute of Ecology and Climate Change (INCC), and the National Commission of Natural Protected Areas (CONANP), have taken on the task of seeking alternatives to address the adverse effects that climate change brings to the tourism sector.

 

Demand for Mortgage Loans set to Continue Rising

Ever since the pandemic began, from February 2020 to February 2021, banks have placed around 10,300 monthly mortgages, which represents a significant growth, according to data from the Association of Banks of Mexico (ABM). In addition, in March 2021, housing credit reached a little more than a tenth of all commercial bank financing, according to the Bank of Mexico.

Luis Leirado indicated that, according to the data generated by Tasvalúo, the demand for mortgage loans will be maintained and will continue to rise in the coming months due to two fundamental factors. One, is that the interest rates for the sector are expected to continue to be very attractive and the other factor is that rates are supported by a monetary policy that promotes the placement of this type of loans from the Bank of Mexico. Furthermore, the CEO assured that the real estate sector in general is betting on a frank recovery.

 

Railway Industry Showing Signs of Recovery

 The Mexican Railway System (SFM) mobilized a total of 54.7 million tons of cargo, which represents an increase of 10.5 percent over the same period last year.

According to figures from the document Pulso del Sector Ferroviario, prepared by the Agencia Reguladora del Transporte Ferroviario (ARTF), Ferrovalle grew 73.2 percent from 720,000 tons between January and May 2020, to 1.2 million tons during the same period this year. In the same period, the Via Corta Tijuana Tecate increased 66.7 percent from 60,000 to 100,000 tons, while Ferromex grew 10.6 percent from 24.1 million to 26.7 million tons, and Ferrosur obtained 0.1 percent growth, transporting 10,000 more tons this year, leaving its total at 5.81 million tons.

The data used in this article was sourced from:  
MBN
Photo by:   mike_ramirez_mx
Lorenzo Núñez Lorenzo Núñez Junior Journalist & Industry Analyst